What industry forces might cause propitious niche to disappear?

Propitious niches can disappear if the external environment and the industry changes. This happens when the market gets smaller because of factors beyond the control of the company and strategic business unit. A smaller market for products and services causes services to be too narrowly demanded. Broader markets with high demands do will cause market niches. The strategic business unit through its own efforts, not only fills the demand, but actually causes the market to expand. The company and Strategic business unit changes due to demands for resources elsewhere in the corporation. This happens when the company is forced to hire and train more qualified workers for the production of current products. Another example would be when the company is forced to market penetrate. This happens when the companys sales need to grow to compensate demand in an existing market with a current product. Market development can also force a business strategic unit to ignore a niche, when the demand of a product is high in market where supply is low. The companies strategic business unit may be forced to cut back on its activities. Its own success in the niche may cause the company to move into nearby niches.